Lawmakers re-up push for short-term rental taxes to fund housing, education
Between April 2022 and 2023, Maine had almost 24,000 rental properties with at least one reservation, according to a statewide housing study. (Maine Morning Star)
Though several legislative attempts to institute taxes on short-term rentals have failed, Democratic lawmakers are trying again this session to institute these surcharges on vacation properties, specifically to support affordable housing for permanent residents and education.
Among these proposals being heard Wednesday in the Taxation Committee is the second iteration of a plan from Rep. Charles Skold (D-Portland). His bill, LD 632, would allow a municipality to impose a local option sales tax of 2% on short-term lodging that is subject to the state sales and use tax, if approved by voters in that municipality.
This is higher than the 1% sales tax on such properties Skold proposed last year in legislation that failed to gain support on the floor after narrowly being backed by the Taxation Committee by a one-vote margin.
Similar to his previous proposal, Skold's bill would require that the revenue the tax generates be used for affordable housing in that municipality.
The regulation of short-term rentals, such as Airbnbs, in Maine has largely fallen to municipalities, with cities such as Portland, Rockland and Bar Harbor taking it upon themselves to pass local rules.
Portland lawmaker proposes funding affordable housing with short-term rental tax
While noting the importance of short-term lodging on the state's economy, Skold and others supportive of his plan last year, including residents along the coast, argued that each housing unit converted into a short-term rental takes away units from individuals and families who would like to stay in Maine full time but who are currently being driven away by a lack of housing supply and high prices.
'This bill does not detract at all from the importance of short-term lodging in our economy, but it allows municipalities heavily impacted by this trend to recover some benefit and use that revenue to help meet their own housing needs,' Skold testified at the time.
But real estate, tourist groups and the state's Department of Administrative and Financial Services opposed Skold's proposed tax, arguing it could deter tourists because of higher costs or disadvantage businesses in the communities that choose to enact the tax.
There were also concerns over the constitutionality of the bill. DAFS testified that any local sales tax should be structured with the 2018 U.S. Supreme Court decision Dakota v. Wayfair, Inc. in mind, which noted the importance of a simple tax system when imposing sales tax on remote sellers.
Other versions of a short-term rental sales tax are being considered this year, too.
Rep. Gary Friedmann (D-Bar Harbor) also proposed a bill to permit municipalities to impose a 2% sales tax on short-term lodging, if approved by referendum, to be used for affordable housing.
However, Friedmann's bill, LD 746, would require 10% of revenue generated to be transferred to the Maine State Housing Authority to be used to provide subsidies through the rural affordable rental housing program or another program that supports affordable housing development in rural communities, specifically.
While differing on the specifics, Skold and Friedmann's proposals to use this tax for affordable housing differ from how Rep. Michael Brennan (D-Portland) is seeking to use revenue generated from such a tax.
Brennan proposed LD 225, which would create a higher tax, an additional 3% sales tax on the value of rental living quarters in a hotel or other lodging, with its revenue reserved for the Maine Department of Education to fund school construction and K-12 education.
Earlier efforts to institute statewide regulations on short term rentals have attempted to impose fees, rather than a tax. That was the case for a bill from Rep. Tiffany Strout (R-Harrington) last session, as well as another bill in the session before last that specifically tried to place fees on second homes unoccupied by a permanent resident. Both bills died.
SUPPORT: YOU MAKE OUR WORK POSSIBLE
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


New York Post
34 minutes ago
- New York Post
Fetterman rips ‘anarchy and true chaos' in LA, warns Dems not to cede ‘moral high ground'
Democratic Pennsylvania Sen. John Fetterman has denounced the riots in Los Angeles and warned his party about the pitfalls of failing to adequately condemn the 'anarchy and true chaos. 'I unapologetically stand for free speech, peaceful demonstrations, and immigration—but this is not that,' Fetterman (D-Pa.) wrote on X on Monday evening. 'This is anarchy and true chaos. My party loses the moral high ground when we refuse to condemn setting cars on fire, destroying buildings, and assaulting law enforcement.' Advertisement The Keystone State Dem included a photo of cars being scorched in a fiery blaze with a shirtless masked man waving a Mexican flag in the background. 3 President Trump has deployed several thousand National Guard troops to Los Angeles to try to help quell the violent protests over his illegal-immigration crackdown. Toby Canham for NY Post Advertisement 3 Sen. John Fetterman, a Dem from Pennsylvania, isn't mincing words about his condemnation of the riots in Los Angeles. Getty Images Around the time of his post, Fetterman was spotted at Butterworth's, a top MAGA hangout in Washington, DC — dining with Trump ally Steve Bannon and Breitbart's Matt Boyle, Politico Playbook reported. Tech mogul Elon Musk commended Fetterman's condemnation of the 'anarchy and true chaos' unfolding in LA, replying with an American flag emoji. Fetterman's post came amid a feud between President Trump and top California Democrats over the prez's decision to federalize the California National Guard and bring in troops to tame the unrest in Los Angeles. Advertisement Protesters had flooded the streets in droves Friday to demonstrate against the Trump administration's immigration enforcement efforts in the city. The ICE agents' targets have included a Home Depot in Paramount. 3 Democratic Los Angeles Mayor Karen Bass has stressed that the violent destructive rioting has largely been limited to downtown. Toby Canham for NY Post By Saturday, some of the demonstrations devolved into violent clashes with federal authorities in Compton and Paramount. The Trump administration mobilized another 2,000 troops to respond to the mayhem, after previously ordering an initial 2,000 troops to the region over the weekend. Trump's secretary of defense, Pete Hegseth, said Monday he also was deploying 700 Marines to the area to help try to contain the chaos. Advertisement Top leadership in California, including Gov. Gavin Newsom and Los Angeles Mayor Karen Bass — both Democrats — slammed the GOP White House for the troop mobilization and pleaded with the public not to turn to violence to protest Trump's immigration policies. Newsom and California Attorney General Rob Bonta, also a Dem, filed a lawsuit Monday against the Trump administration seeking to void the president's memo to federalize the state's National Guard. Fetterman hasn't been afraid to punch the left in his own party, particularly when it comes to Israel. Near the end of the Biden administration, he had also favored measures to strengthen border security.
Yahoo
an hour ago
- Yahoo
The Latest: Trump defends National Guard deployment as protests spread to other cities
President Donald Trump is defending his decision to send Another 2,000 National Guard troops along with 700 Marines to Los Angeles, escalating a military presence local officials and Gov. Gavin Newsom don't want and the police chief says creates logistical challenges for safely handling protests. Additional protests against immigration raids are expected to continue in other cities Tuesday. Here's the latest: Hegseth refuses to provide lawmakers details on costs of sending Marines to Los Angeles In a back an forth with the defense appropriations subcommittee's top Democrat, Hegseth refused to answer basic questions on the cost of deploying Marines to Los Angeles, instead falling back on political talking points. In a series of questions on the news that Marines would be sent to Los Angeles, House Appropriations defense subcommittee ranking member Rep. Betty McCollum told Hegseth 'this is a deeply unfair position to put our Marines in,' she said. 'There's no need for the Marines to be deployed.' McCollum asked what the cost of the deployment would be. Hegseth deflected on the costs, attacked the decisions of the previous Biden administration instead and talked about illegal immigration. 'Could the Secretary please address the budget' McCollum asked him. Hegseth again refused to acknowledge McCollum's question and attacked the politics of the past administration again. McCollum took back her time and Hegseth was instructed by the committee chairman to provide the costs in writing instead. California Democrats accuse Trump of inciting unrest Democratic members of California's congressional delegation are accusing President Donald Trump of creating a 'manufactured crisis' in Los Angeles with his orders to send in thousands of National Guard troops and hundreds of Marines. 'It's a deliberate attempt by Trump to incite unrest, test the limits of executive power and distract from the lawlessness of his administration,' said Rep. Jimmy Gomez, who organized a press conference at the U.S. Capitol on Tuesday morning. Rep. Jimmy Panetta said that Trump's decision to send in the military was designed to 'give him the image and give him the fight and give him the pictures that he wants.' Panetta said the delegation would stand with peaceful protesters, but those who are not peaceful are going to pay the consequences. Rep. Nancy Pelosi contrasted Trump's actions now with his handling of the Jan. 6th insurrection at the U.S. Capitol when law enforcement officers were being beaten. 'We begged the president of the United States to send in the National Guard. He would not do it,' Pelosi said. Trump links protests in Los Angeles to home rebuilding after wildfires Trump said his decision to 'SEND IN THE TROOPS' to Los Angeles spared the city from burning to the ground like thousands of homes after wildfires this year. He wrote on his social media site that people want to rebuild, and that the federal permitting process is 'virtually complete on these houses.' Trump claimed that 'the easy and simple City and State Permits are disastrously bungled up and WAY BEHIND SCHEDULE!' and blamed California Gov. Gavin Newsom and Los Angeles Mayor Karen Bass. 'People want to rebuild their houses. Call your incompetent Governor and Mayor, the Federal permitting is DONE!!!' he wrote. Pentagon draws up rules on possible use of force by Marines The Pentagon was scrambling Monday to establish rules to guide U.S. Marines who could be faced with the rare and difficult prospect of using force against citizens on American soil, now that the Trump administration is deploying active duty troops to the immigration raid protests in Los Angeles. The forces have been trained in deescalation, crowd control and standing rules for the use of force, Northern Command said. But the use of the active duty forces still raises difficult questions. The Marines are highly trained in combat and crisis response. But that is starkly different from the role they will face now: They could potentially be hit by protesters carrying gas canisters and have to quickly decide how to respond or face decisions about protecting an immigration enforcement agent from crowds. According to a U.S. official, troops will be armed with their normal service weapons but will not be carrying tear gas. They also will have protective equipment such as helmets, shields and gas masks. ▶ Read more about the Pentagon's guidelines for the Marines Los Angeles' image is scuffed since ICE raids and protests, with World Cup and Olympics on horizon This isn't the image Los Angeles wanted projected around the globe. Clouds of tear gas wafting over a throng of protesters on a blocked freeway. Federal immigration agents in tactical garb raiding businesses in search of immigrants without legal status. A messy war of words between Trump and Newsom. Photos captured several Waymo robotaxis set on fire and graffiti scrawled on a federal detention center building, while videos recorded the sounds of rubber bullets and flash-bang grenades hitting crowds. In a city still reeling from January's deadly wildfires — and with the World Cup soccer championships and the 2028 Olympics on the horizon — Mayor Karen Bass has been urging residents to come together to revitalize LA's image by sprucing up streets, planting trees and painting murals so LA shows its best face to nations near and far. 'It's about pride,' she's said. 'This is the city of dreams.' ▶ Read more about the impact of the protests Guard deployment is a nearly unprecedented escalation The deployment appeared to be the first time in decades that a state's National Guard was activated without a request from its governor, a significant escalation against those who have sought to hinder the administration's mass deportation efforts. Protesters clasp hands in front of a line of California National Guard, Monday, June 9, 2025, at a Federal Building in downtown Los Angeles. (AP Photo Jae Hong) The last time the National Guard was activated without a governor's permission was in 1965, when President Lyndon B. Johnson sent troops to protect a civil rights march in Alabama, according to the Brennan Center for Justice. In a directive Saturday, Trump invoked a legal provision allowing him to deploy federal service members when there is 'a rebellion or danger of a rebellion against the authority of the Government of the United States.' Early protests remained peaceful On Monday, thousands flooded the streets around City Hall for a union rally ahead of a hearing for arrested labor leader David Huerta, who was freed a few hours later on a $50,000 bond. Huerta's arrest Friday while protesting immigration raids has become a rallying cry for people angry over the administration's crackdown. He is the president of the Service Employees International Union California, which represents thousands of the state's janitors, security officers and other workers. Early protests had a calm and even joyful atmosphere at times, with people dancing to live music and buoyed by Huerta's release. Protesters linked hands in front of a line of police officers outside the downtown federal detention center where Huerta was being held. Religious leaders joined the protesters, working with organizers at times to de-escalate moments of tension. There was a heavy law enforcement presence in the few square blocks, while most in the immense city of some 4 million people went about their normal business on peaceful streets. Trump sends Marines and more National Guard members to Los Angeles Another 2,000 National Guard troops along with 700 Marines are headed to Los Angeles on orders from President Donald Trump, escalating a military presence local officials and Newsom don't want and the police chief says creates logistical challenges for safely handling protests. An initial 2,000 Guard troops ordered by Trump started arriving Sunday, which saw the most violence during three days of protests. Monday's demonstrations were far less raucous, with thousands peacefully attending a rally at City Hall and hundreds protesting outside a federal complex that includes a detention center where some immigrants are being held following workplace raids across the city. Trump has described Los Angeles in dire terms that Mayor Karen Bass and Newsom say are nowhere close to the truth. They say he is putting public safety at risk by adding military personnel even though police say they don't need the help. Newsom called the deployments reckless and 'disrespectful to our troops' in a post on the social platform X. ▶ Read more about the deployment of more National Guard members


Newsweek
an hour ago
- Newsweek
2024 Election Results Under Scrutiny as Lawsuit Advances
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A legal case questioning the accuracy of the 2024 election is moving forward. The lawsuit, brought by SMART Legislation, the action arm of SMART Elections, a nonpartisan watchdog group, filed the lawsuit over voting discrepancies in Rockland County, New York. Judge Rachel Tanguay of the New York Supreme Court ruled in open court in May that the allegations were serious enough for discovery to proceed. Newsweek has contacted SMART Elections for comment via email. People cast their ballots on the last day of early voting for the general election in Michigan at the Livingston Educational Service Agency in Howell on November 3, 2024. People cast their ballots on the last day of early voting for the general election in Michigan at the Livingston Educational Service Agency in Howell on November 3, 2024. Jeff Kowalsky/AFP via Getty Images Why It Matters The lawsuit could renew debate about the 2024 election, though it won't change the outcome since Congress has certified the results declaring President Donald Trump the winner. It comes amid unconfirmed reports that voting machines were secretly altered before ballots were cast in November's election. The federally accredited testing lab, Pro V&V, that signed off on "significant" changes to ES&S voting machines—which are used in over 40 percent of U.S. counties—"vanished from public view" after the election, according to the Dissent in Bloom Substack. What To Know According to the complaint, more voters have sworn in legal affidavits that they voted for independent U.S. Senate candidate Diane Sare than the Rockland County Board of Elections counted and certified, contradicting those results. The complaint also cited numerous statistical anomalies in the presidential election results. They include multiple districts where hundreds of voters chose the Democratic candidate Kirsten Gillibrand for Senate, but none voted for former Vice President Kamala Harris, the Democratic candidate for president. Max Bonamente, a professor of physics and astronomy at the University of Alabama in Huntsville and the author of the Statistics and Analysis of Scientific Data, said in a paper that the 2024 presidential election results were statistically highly unlikely in four of the five towns in Rockland County when compared with 2020 results. What People Are Saying Lulu Friesdat, the founder and executive director of SMART Legislation, said in a statement: "There is clear evidence that the Senate results are incorrect, and there are statistical indications that the presidential results are highly unlikely. "If the results are incorrect, it is a violation of the constitutional rights of each person who voted in the 2024 Rockland County general election. The best way to determine if the results are correct is to examine the paper ballots in a full public, transparent hand recount of all presidential and Senate ballots in Rockland County. We believe it's vitally important, especially in the current environment, to be absolutely confident about the results of the election." Max Bonamente said in a paper on the voting data from Rockland County: "These data would require extreme sociological or political causes for their explanation, and would benefit from further assurances as to their fidelity." Costas Panagopoulos, a professor of political science at Northeastern University, told Newsweek: "Statistical irregularities in elections should always be investigated, but the sources of such inconsistencies, which can include error or miscalculation, are not always nefarious. Still, scrutinizing election results can strengthen confidence in elections. Mistakes can happen. "In this case, the drop-off inconsistencies could reflect the idiosyncratic nature of the 2024 presidential election cycle. Alone, statistical comparisons to previous cycles cannot provide definitive proof of wrongdoing. "In any case, it does not appear that any of these inconsistencies would be sufficient to change the outcomes of any of the elections in question in New York state. That does not mean they should not be scrutinized, and any errors, if verified, should be corrected for the historical record. But there is not necessarily any need to invalidate any of these elections in these jurisdictions." What's Next The lawsuit is seeking a full, hand recount of ballots cast in the presidential and U.S. Senate races in Rockland County. A hearing has been scheduled for September 22.